From Obama’s “The More Americans Succeed, The More America Succeeds” to the Truth

Today I was impressed to watch Obama’s Weekly Address of December 03, 2011 in which he literally called for Americans to unite against the Republicans.  He said that Republicans were not only opposing the American Jobs Act but that they were actually opposing to the reduction of taxes for middle class families by about $1,000.00. He was giving the speech of “we’ve got to cut taxes” and more so, that he had established a supposed computerized calculator to tell Americans how much money they were going to lose from their pockets if they don’t Stop Republicans. Here is the video,

Now, President Obama was lying once again and the reason lies behind the fact that he is calling for $1.5 trillion in new tax revenue. As professor Lew Rockwell from the Ludwig von Mises Institute noted,  the proposed cuts are not real cuts, but cuts in the rate of increase, says Rockwell. He pointed out that the tax hikes are aimed at young entrepreneurs and business people starting out, as the oligarchs don’t like new people moving up in society.

“Taxes are wealth destruction. So anybody that proposes more taxes seeks to make us poorer as a group. However, the elites will make a lot more money out of this.”

More so, Rockwell believes that Obama, funded by the biggest banks, wants to help the ruling class and stick it to the productive class. He argues that the elite bankers, military industrial complex, and big pharma are getting far too rich and must be cut back. Rockwell predicts global inflation will result from the current depression.

Watch Rockwell’s complete explanation in this video,
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Article: The Global Reserve Army of Labor and the New Imperialism

Loyalist Arms Factory
Image by Burns Library, Boston College via Flickr

I managed to read this article while having coffee today in a exquisite café in front of the Palace Museum in Weimar. It was very hard to try understanding the author’s ideas while he refuses to accept that the value of a product is the result of an objective theory of valuation done by the consumers and sellers in specific contexts. He gives for granted that labor force is the one deterministic condition behind production and trying to get his point seems quite difficult at points. Nonetheless, this is a great opportunity to understand the mainstream ideas of Karl Marx theories in regard to Globalization and what some of them call “Global Capitalism / New Imperialism”. Here’s the intro and then a link to the article via EbscoHost,

The article discusses the ways in which the growth of the global capitalist labor force has altered the imperialistic nature of global capitalism, as represented by powerful multinational corporations, by negatively affecting wages in both developing and wealthy countries. The authors rely heavily on philosopher Karl Marx’s theories on the industrial reserve army and capital accumulation, which posit that wealth accumulation will invariably lead to increased suffering for the working masses. They go on to explain the exploitative nature of global labor arbitrage, which essentially means a corporation’s benefiting from low wages in developing countries. The process of arbitrage is related to the development of massive global supply chains.
Read more: The Global Reserve Army of Labor and the New Imperialism. (AN 66933797) Academic Search Complete. FOSTER, JOHN BELLAMY; McCHESNEY, ROBERT W.; JONNA, R. JAMILMonthly Review: An Independent Socialist Magazine; 11/01/2011

Corporatism (a.k.a. Neo-Patrimonialism) is not Capitalism

JP Morgan Chase Tower in Dallas, Texas.

Right now, there is a lot of talk about the evils of “capitalism”.  But it is not really accurate to say that we live in a capitalist system.  Rather, what we have in the United States today, and what most of the world is living under, is much more accurately described as “corporatism”.  Under corporatism, most wealth and power is concentrated in the hands of giant corporations and big government is used as a tool by these corporations to consolidate wealth and power even further.  In a corporatist system, the wealth and power of individuals and small businesses is dwarfed by the overwhelming dominance of the corporations.  Eventually, the corporations end up owning almost everything and they end up dominating nearly every aspect of society.  As you will see below, this very accurately describes the United States of America today.  Corporatism is killing this country, and it is not what our founding fathers intended.

The following is the definition of “corporatism” from the Merriam-Webster dictionary….

the organization of a society into industrial and professional corporations serving as organs of political representation and exercising control over persons and activities within their jurisdiction

Corporatism is actually not too different from socialism or communism.  They are all “collectivist” economic systems.  Under corporatism, wealth and power are even more highly concentrated than they are under socialism or communism, and the truth is that none of them are “egalitarian” economic systems.  Under all collectivist systems, a small elite almost always enjoys most of the benefits while most of the rest of the population suffers.

The Occupy Wall Street protesters realize that our economic system is fundamentally unjust in many ways, but the problem is that most of them want to trade one form of collectivism for another.

But our founding fathers never intended for us to have a collectivist system.

Instead, they intended for us to enjoy a capitalist system where true competition and the free enterprise system would allow individuals and small businesses to thrive.

In an article that was posted earlier this year on Addicting Info, Stephen D. Foster Jr. detailed how our founding fathers actually felt about corporations….

The East India Company was the largest corporation of its day and its dominance of trade angered the colonists so much, that they dumped the tea products it had on a ship into Boston Harbor which today is universally known as the Boston Tea Party. At the time, in Britain, large corporations funded elections generously and its stock was owned by nearly everyone in parliament. The founding fathers did not think much of these corporations that had great wealth and great influence in government. And that is precisely why they put restrictions upon them after the government was organized under the Constitution.

After the nation’s founding, corporations were granted charters by the state as they are today. Unlike today, however, corporations were only permitted to exist 20 or 30 years and could only deal in one commodity, could not hold stock in other companies, and their property holdings were limited to what they needed to accomplish their business goals. And perhaps the most important facet of all this is that most states in the early days of the nation had laws on the books that made any political contribution by corporations a criminal offense.

Our founding fathers would have never approved of any form of collectivism.  They understood that all great concentrations of wealth and power represent a significant threat to the freedoms and liberties of average citizens.

Are you not convinced that we live in a corporatist system?

Well, keep reading.

The following are 7 things about the monolithic predator corporations that dominate our economy that every American should know….

#1 Corporations not only completely dominate the U.S. economy, they also completely dominate the global economy as well.  A newly released University of Zurich study examined more than 43,000 major multinational corporations.  The study discovered a vast web of interlocking ownerships that is controlled by a “core” of 1,318 giant corporations.

But that “core” itself is controlled by a “super-entity” of 147 monolithic corporations that are very, very tightly knit.  As a recent article in NewScientist noted, these 147 corporations control approximately 40 percent of all the wealth in the entire network….

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 percent of the total wealth in the network. “In effect, less than 1 percent of the companies were able to control 40 percent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

Unsurprisingly, the “super-entity” of 147 corporations is dominated by international banks and large financial institutions.  For example, JP Morgan Chase, Goldman Sachs, Morgan Stanley and Bank of America are all in the top 25.

#2 This dominance of the global economy by corporations has allowed global wealth to become concentrated to a very frightening degree.

According to Credit Suisse, those with a household net worth of a million dollars or more control 38.5% of all the wealth in the world.  Last year, that figure was at 35.6%.  As you can see, it is rapidly moving in the wrong direction.

For a group of people that represents less than 0.5% of the global population to control almost 40 percent of all the wealth is insane.

The dominance of corporations is also one of the primary reasons why we are witnessing income inequality grow so rapidly in the United States.  The following comes from a recent article in the Los Angeles Times….

An economic snapshot from the Economic Policy Institute shows that inflation-adjusted incomes of the top 1% of households increased 224% from 1979 to 2007, while incomes for the bottom 90% grew just 5% in the same time period. Those in the top 0.1% of income fared even better, with incomes growing 390% over that time period.

You can see a chart that displays these shocking numbers right here.

#3 Since wealth has become concentrated in very few hands, that means that there are a whole lot of poor people out there.

At a time when technology should be making it possible to lift standards of living all over the globe, poverty just continues to spread.  According to the same Credit Suisse study referenced above, the bottom two-thirds of the global population controls just 3.3% of all the wealth.

Not only that, more than 3 billion people currently live on less than 2 dollar a day.

While the ultra-wealthy live the high life, unimaginable tragedies play out all over the globe every single day.  Every 3.6 seconds someone starves to death and three-quarters of them are children under the age of 5.

#4 Giant corporations have become so dominant that it has become very hard for small businesses to compete and survive in the United States.

Today, even though our population is increasing, the number of small businesses continues to decrease.

According to the Bureau of Labor Statistics, 16.6 million Americans were self-employed back in December 2006.  Today, that number has shrunk to 14.5 million.

This is the exact opposite of what should be happening under a capitalist system.

#5 Big corporations completely dominate the media.  Almost all of the news that you get and almost all of the entertainment that you enjoy is fed to you by giant corporations.

Back in 1983, somewhere around 50 corporations controlled the vast majority of all news media in the United States.

Today, control of the news media is concentrated in the hands of just six incredibly powerful media corporations.

#6 Big corporations completely dominate our financial system.  Yes, there are hundreds of choices in the financial world, but just a handful control the vast majority of the assets.

Back in 2002, the top 10 banks controlled 55 percent of all U.S. banking assets.  Today, the top 10 banks control 77 percent of all U.S. banking assets.

The “too big to fail” banks just keep getting more and more powerful.  For example, the “big six” U.S. banks (Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo) now possess assets equivalent to approximately 60 percent of America’s gross national product.

#7 Big corporations completely dominate our political system.  Because they have so much wealth and power, corporations can exert an overwhelming amount of influence over our elections.  Studies have shown that in federal elections the candidate that raises the most money wins about 90 percent of the time.

Politics in America is not about winning over hearts and minds.

It is about who can raise the most cash.

Sometimes this truth leaks out a bit in the mainstream media.  For example, during a recent show on MSNBC, Dylan Ratigan made the following statement….

“The biggest contributor to Barack Obama’s presidential campaign is Goldman Sachs. The primary activities of this president relative to banking have been to protect the most lucrative aspect of that business, which is the dark market for credit default swaps and the like. That has been the explicit agenda of his Treasury Secretary. This president is advocating trade agreements that allow enhanced bank secrecy in Panama, enhanced murdering of union members in Colombia, and the refunding of North Korean slaves.”

Later on, Ratigan followed up by accusing both political parties of working for the bad guys….

“But I guess where I take issue is, this president is working for the bad guys. The Democrats are working for the bad guys. So are the Republicans. The Democrats get away with it by saying, ‘Look at how crazy the Republicans are; at the Democrats pretend to care about people.’ BUT THE FACT IS THE 2-PARTY POLITICAL SYSTEM IS UTTERLY BOGUS.”

Wow – nobody is actually supposed to say that on television.

Today, most of our politicians are bought, and most of them actively help the monolithic predator corporations accumulate even more wealth and even more power.

In fact, as I wrote about recently, the big Wall Street banks are already trying to buy the election in 2012.

Fortunately, it looks like the American people are starting to wake up.  According to one recent survey, only 23 percent of all Americans now trust the financial system, and 60 percent of all Americans are either “angry” or “very angry” about the economy.

Unfortunately, many of them are joining protest movements such as Occupy Wall Street which are calling for one form of collectivism to replace another.

The American people are being given a false choice.

We don’t have to choose between corporatism and socialism.

We don’t have to choose between big corporations and big government.

Our founding fathers actually intended for corporations and government to both be greatly limited.

The following is a famous quote from Thomas Jefferson….

“I hope that we shall crush in its birth the aristocracy of our monied corporations, which dare already to challenge our government to a trial of strength, and bid defiance to the laws of our country.”

Unfortunately, things did not turn out how Jefferson wanted.  Instead of us controlling the corporations, they now control us.

This next quote is from John Adams….

“Banks have done more injury to the religion, morality, tranquility, prosperity, and even wealth of the nation than they can have done or ever will do good.”

But who dominates our economy today?

The big banks.

Perhaps we should have listened to founding fathers such as John Adams.

Lastly, here is another quote from Thomas Jefferson….

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

How prescient was that quote?

Last year, over a million American families were booted out of their homes by the big banks.  The financial institutions actually now have more total equity in our homes than we do.

Unemployment is rampant, but corporate profits are soaring.  The number of Americans on food stamps has increased by more than 70 percent since 2007, and yet the incomes of those at the top of the food chain continue to increase.

We need a system that allows all Americans to start small businesses, compete fairly and have a chance at success.

Instead, what we have is a corporatist system where the big corporations have most of the wealth, most of the power and most of the advantages.

We need to get the American people to understand that corporatism is not capitalism.

Corporatism is a collectivist system that allows the elite to accumulate gigantic amounts of wealth and power.

The answer to such a system is not to go to a different collectivist system.

Rather, we need to return as much power as possible to individuals and small businesses.

Our founding fathers intended for us to live in a country where power was highly decentralized.

Why didn’t we listen to them?

Source of the article: Corporatism Is Not Capitalism: 7 Things About The Monolithic Predator Corporations That Dominate Our Economy That Every American Should Know

Last day to Pre-Order the DVD of a Great Movie!

Today is the Last Day to Pre-Order the DVD of the movie “Atlas Shrugged Part 1” (watch the trailer), which was inspired by The most wonderful fiction book ever written (and my favorite). I strongly recommend you to buy it and enjoy the movie!

GUARANTEE  to be shipped by NOV. 8th

If you buy the DVD today, you get to to guarantee yours for the release date on November 8th. Don’t delay. PRE-ORDER NOW.

 

BLU-RAY

The Atlas Shrugged Special Edition Blu-Ray, which combines ALL of the exclusive content from ALL of the Special Edition DVDs (and then some), will not be available for pre-order until mid-November with a release date pending for late November.

HOWEVER, you can pre-order the standard edition 20th Century Fox version of the Blu-Ray on Amazon right now for release day delivery on Nov. 8th. It won’t be nearly as content rich as the Special Edition but, if you simply can’t wait for the movie, problem solved.

PRE-ORDER THE BLU-RAY NOW.

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Academic Article. French Intellectuals and Globalisation: A War of Worlds.

Alien tripod illustration by Alvim Corréa, fro...
Image via Wikipedia

Yesterday I posted the famous audio/story of Orson WellesOctober 30, 1938 broadcast titled “Space invaders” that scared thousands of people who believed that Martians were invading Earth.

Today’s Academic Article recommendation will continue in that tone. This time, it is the turn for French intellectuals to play the role of Martians. 😉 They have leaded the opposition to what they call neo-liberal globalization (a.k.a. Westernization by means of corporate capitalism). Hope you enjoy it and don’t get too scared!

“French intellectuals have been at the forefront of a national and international movement of opposition to neo-liberal globalisation. Drawing on Samuel Huntington’s controversial work, The Clash of Civilisations, I will argue that French intellectuals shared a civilisational perspective of globalisation, seeing it not as a piecemeal market process or economic reform, but as an all-encompassing external threat. This civilisational perspective had contradictory effects on the nature of their opposition. On the one hand, intellectuals were able to produce a radical critique that challenged neo-liberalism and reinscribed the market within a specific political and ideological context. On the other hand, they tended to perpetuate an essentialist view of globalisation that saw this not as an economic process but as an expression of a pre-determined Anglo-Saxontype.”

Waters, Sarah. 2011. “French Intellectuals and Globalisation: A War of Worlds.” French Cultural Studies 22, no. 4: 303-320.  Academic Search Complete, EBSCOhost (accessed October 31, 2011).

China Is Asked for Investment in Euro Rescue

Euro
Image by Images_of_Money via Flickr

A new chapter is being written in the History of Money, Bank and Credit as news of how European leaders are asking for China to rescue them from the chaos they created. I wish this guys reconsidered before continue acting some of the most important principles of Deficit Financing, Freedom, Inflation, Money, Property Rights, Savings, Welfare State, Consumption, Credit; Gold Standard, Market Value, Objective Theory of Values, Production, Purchasing Power, Sanction of the Victim, Selfishness and the Trader Principle just to mention a few before going on making more business that en debts their country’s economy while make their citizens poorer.

And as Ayn Rand cleverly mentioned in regard to Deficit Financing,

The government has no source of revenue, except the taxes paid by the producers. To free itself—for a while—from the limits set by reality, the government initiates a credit con game on a scale which the private manipulator could not dream of. It borrows money from you today, which is to be repaid with money it will borrow from you tomorrow, which is to be repaid with money it will borrow from you day after tomorrow, and so on. This is known as “deficit financing.” It is made possible by the fact that the government cuts the connection between goods and money. It issues paper money, which is used as a claim check on actually existing goods—but that money is not backed by any goods, it is not backed by gold, it is backed by nothing. It is a promissory note issued to you in exchange for your goods, to be paid by you (in the form of taxes) out of your future production.

“Egalitarianism and Inflation,”
Philosophy: Who Needs It, 133

Read more of this news:

PARIS — A day after European leaders unveiled their latest plan to save the euro, top officials opened talks with China in an effort to lure tens of billions of dollars in additional cash, giving China perhaps its biggest opportunity yet to exercise financial clout in the Western world.

China is expected to demand significant concessions, including financial guarantees and limits on what Beijing sees as discriminatory trade policies, in exchange for any investment in Europe’s emergency stability fund. The head of the rescue fund, Klaus Regling, got a cautious reply from Chinese officials Friday during a visit to Beijing, where he said he did not expect to reach an investment deal with China anytime soon.

A senior Chinese official, Vice Finance Minister Zhu Guangyao, said China — like the rest of the world — was still waiting for the Europeans to deliver crucial details on how the rescue fund, the European Financial Stability Facility, would operate and be profitable before deciding on whether to participate. via: China Is Asked for Investment in Euro Rescue by Liz Alderman and David Barboza.

Friday Book Recommendation

Economic Depressions: Their Cause and Cure
Need a short monograph on Austrian business cycle theory? This is the one to get.Murray Rothbard was the master of reducing complicated theories to their very essence while retaining theoretical rigor, and this essay is a case in point. It was written in 1969 and published in the form of a tiny book that achieved a huge circulation. It has not been in print since that time, but it is now back in this new release.